Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: E

EQUAL OPPORTUNITY EMPLOYER (EOE)

An employer who overt advertises to being in compliance with the principle of equal opportunity. The focus is typically hiring and promotion practices. Such an employer will not discriminate and will terminate

EQUITABLE ASSIGNMENT

A result that falls short of meeting the requirements of a legal assignment, yet, in the interest of fairness and justice, will be enforced by the courts, and documented as valid.

EQUITY INVESTMENT

The worth of assets and money an entity invests (person, company, group) in another company or fund. Ownership is represented the number of shares the owning entity holds as investments over time.

EQUITY SWAP

Actual trading full or partial ownership of one or more security vehicles or investment risks between one or more parties.

ERROR OF PRINCIPLE

Accounting mistake posted to an incorrect account after a double-entry item error was made on one or both sides.

ETHICAL

Depends of society’s moral code. Personal code often differs from public code and often differs from legal code. Meant to mean that which is equitable, fair, and just when dealing with people.

EUROCURRENCY

Any currency from a specific country that is deposited or traded in another country. Known as Eurodollars, Eurosterling, or Euroyen.

EUROPEAN LIFE SETTLEMENT ASSOCIATION (ELSA)

Group formed to assure life settlement transactions are executed compliant to standards and with fair treatment. By selling the policy value to a third-party, a life insurance policy owner initiates a life

EVENT MARKETING

Designing and developing a promotion for a product, cause, or organization. Tying a sporting event, music festival, fair, or concert with themed activity, an occasion, some display, or an exhibit.. Known also

EXACERBATE

Make a bad situation, condition, or result worse. An example is putting salt in a wound. It makes the pain worse (exacerbates the pain).

EXCESS LAYER

Any INSURANCE coverage that becomes effective once the INSURED

EXCHANGE FOR PHYSICAL (EFP)

A facility offered by certain EXCHANGES where two parties can agree to swap, off exchange, a FUTURES contract for a physical ASSET at the price quoted on the exchange. Before an EFP

EXCLUSIVE AGENCY AGREEMENT

Agreed-to, time-bound restriction for all involved parties to not make similar agreements with other, not included parties. Intent is to limit loss of capability and limit loss of intellectual capital while the

EXCURSION LIMIT

Specified, time-bound (typically 30 minutes), restricted exposure allowed to something unhealthy, even deadly. Meaningful especially in health and safety regulations.

EXECUTIVE DIRECTOR

A title typically in nonprofits than a commercial company. Usually a full-time employee in the role of working director finance, marketing, or operations. Position often scoped to allow for making director-level decisions.

EXIT FEE

An expense or penalty a consumer pays to a vendor for terminating an existing agreement. Typically done to gain some advantage by engaging another vendor or supplier. An example is the switching

EXPANSIONARY MONETARY POLICY

Fiscal policy intending to increase country’s money supply, building it higher than demand, then taking advantage of the increased capital to make tax cuts while increasing government spending to trigger spur economic

EXPECTED UTILITY

The weighted average utility value or satisfaction from income or wealth that is derived from a particular activity. Utility is generally used in an economic or theoretical RISK MANAGEMENT framework; precise measurement

EXPENSE RATIO

A total of fees paid periodically to a mutual fund divided by the total investment that shareholders or unit holders has. These fees are management fees, administrative fees, and operating expenses of

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